LONDON (Alliance News) - AIM-listed gaming company GVC Holdings PLC, the owner of Sportingbet, is working with US hedge fund Cerberus Capital Management to make a new GBP1 billion takeover offer for Bwin.Party Digital Entertainment PLC, The Sunday Times reported.
On Tuesday, GVC had said it is considering its options regarding its bid for Bwin.Party after the FTSE 250 target company agreed a deal the week before to be acquired by 888 Holdings PLC.
GVC had said there was no certainty that it will make a new offer for Bwin.Party but said it was considering its options. GVC had made a 110 pence per share bid for Bwin.Party earlier this month, in a bid backed by Canadian gaming company Amaya Gaming Inc.
But Bwin.Party turned its back on the GVC offer to agree a merger with 888.
The agreed 888 deal is lower than GVC's original offer, valuing Bwin.Party at GBP898.3 million. The consideration comprises 39.45p in cash and 0.404 of a new 888 share per Bwin.Party share. 888 said the offer values Bwin.Party shares at 104.09p, a 16% premium to their closing price on May 14, when Bwin.Party first entered talks with its potential suitors.
Bwin.Party had said it had decided to go with 888's offer as the bid from GVC, which though containing "many attractive features", also carried "additional execution risks".
The Sunday Times, citing City sources, said GVC and New York-based Cerberus now are working on a revised cash-and-shares offer for Bwin of between 115p and 120p a share to be submitted this week.
Bwin would have to pay 888 a GBP5.7 million break fee if it were to decide to switch to a new suitor, the newspaper noted.
Amaya's role alongside GVC and Cerberus is expected to be decided this week, The Sunday Times said .
The newspaper noted that Cerberus is a shareholder in Gala Coral, which on Friday agreed to a GBP2.1 billion merger with Ladbrokes PLC, amid a wider consolidation in the UK gambling sector.
http://www.thesundaytimes.co.uk/sto/business/Retail_and_leisure/article1585362.ece
By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite
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